Osmond Resources (ASX: OSM) Gains Momentum Towards Major Resource Upgrade at US$2.3 Billion Critical Minerals Project

Osmond Resources Limited (ASX: OSM) is strengthening the growth outlook for its Orión critical minerals project in southern Spain, with its 13 November 2026 drilling update pointing to growing confidence in a potential mineral resource upgrade.

The progress builds on an established 60-million-tonne resource and preliminary project economics indicating a US$2.31 billion post-tax net present value (NPV).

With additional drilling underway, improved geological confidence and the potential to expand its resource base, Osmond is positioning Orión for its next major development milestone.

Key Numbers

• 60.0Mt: Maiden JORC mineral resource announced on 30 September 2026, including 15.3Mt of Measured and Indicated resources.
• 9.39% TiO₂, 3.06% ZrO₂ and 6,274ppm TREO: Average resource grades highlighting Orión's titanium, zirconium and rare earths potential.
• US$2.31 billion: Preliminary post-tax project NPV at an 8% discount rate, with a modelled internal rate of return of 145%.
• US$299 million: Estimated initial development capital, including contingency.
• More than A$6.5 million: Pro forma cash position at 31 October 2026, including a Spanish government grant and following a A$3.75 million capital raising.

First Three Drill Holes Strengthen Resource Upgrade Potential

Osmond's latest announcement, First Three Drill Holes Provide Confidence in MRE Upgrade, highlights encouraging progress in its expanded drilling campaign at Orión.

The programme is designed to increase geological confidence and potentially expand the existing mineral resource, strengthening the technical foundation for future development.

Approximately 44.7Mt of Orión's current resource remains classified as Inferred, creating an opportunity to improve resource classification through additional drilling.

Successful conversion into higher-confidence categories could support more detailed mine planning, improve development certainty and strengthen subsequent economic studies.

Importantly, the existing resource covers approximately 3.4% of Osmond's 232-square-kilometre project tenure.

This provides considerable scope for further exploration, although additional economically viable resources must still be demonstrated.

Project Economics Highlight Significant Commercial Potential

Orión's October 2026 scoping study provides an encouraging indication of the project's possible commercial scale.

The preliminary development concept involves an underground mining operation processing approximately two million tonnes annually over an initial nine-year mine life.

Projected annual concentrate production includes approximately 42,300 tonnes of monazite, 68,000 tonnes of zircon and 109,000 tonnes of titanium minerals.

The study estimates average annual EBITDA of US$531 million, with potential capital payback approximately six months after production commences.

These preliminary figures suggest an attractive development opportunity, particularly given Europe's strategic interest in securing critical minerals supply.

However, the projections remain subject to additional drilling, metallurgical validation, permitting and financing.

The study also incorporates Inferred resources, and its financial estimates relate to the whole project rather than Osmond's effective 76% beneficial interest.

What Osmond Is Doing Now

Osmond is progressing an expanded drilling campaign targeting approximately 15 to 20 holes, with an upgraded resource estimate and revised scoping study planned for the first quarter of 2027.

The company is also advancing pre-feasibility-level metallurgical testwork focused on improving zircon, rutile and monazite concentrate quality.

Additional initiatives include investigating downstream rare earths processing, seeking European project support and progressing plans for a potential secondary listing in Madrid.

Its recent A$3.75 million capital raising provides additional financial flexibility to advance these programmes.

Insight: Could Resource Growth Unlock Greater Value at Orión?

We see encouraging potential in Osmond's combination of resource scale, attractive preliminary economics and exposure to strategically important European critical minerals markets. The latest drilling progress adds confidence to its planned resource upgrade, while ongoing metallurgical work could improve future processing outcomes and product value. Importantly, a higher-confidence resource may strengthen the foundation for future financing and development decisions. Although permitting, construction funding and technical validation remain essential, we believe Osmond is making meaningful progress towards demonstrating Orión's longer-term commercial potential.

What Happens Next?

The upgraded mineral resource and revised scoping study targeted for early 2027 represent the next major catalysts.

Further drilling could support improved resource classification, while metallurgical results may refine operating assumptions and potential product economics.

These developments are expected to inform Osmond's proposed mining licence application during the first half of 2027.

With a substantial resource already established, promising preliminary economics and an expanding technical programme, Osmond is building a stronger foundation for Orión's development.

The coming milestones will determine how effectively that geological potential can translate into a financeable European critical minerals operation.